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Amazon is expanding its product offerings in Canada, adding a grocery department and automotive shop to its online shopping services.

The ecommerce giant has added more than 15,000 non-refrigerated food products, including a number of brand names such as Kellogg’s, Campbell’s Soup and Nestle, and a range of specialty items.

The grocery launch is in addition to the opening of an auto store at Amazon.ca, which lists auto and truck accessories ranging from battery cables to car electronics.

Amazon’s expansion into the Canadian grocery market heats up an already intensely competitive sector. While it gives consumers yet more choice, Luke Sklar, founder of retail and marketing consultancy Sklar Wilton & Associates, predicts the increased competition will “be ugly.”

“(Amazon is) raising the game and raising customer expectations in an ecommerce world, and that’s putting more stress on an already stressed business,” said Sklar.

Amazon will pose the biggest threat to Walmart, which recently started selling a selection of groceries online, although Sklar said Amazon’s entry will affect all grocery retailers by fuelling demand for online shopping.

In the Lower Mainland, consumers can get fresh produce and other groceries delivered by Spud.ca, an online ordering service that serves shoppers from Pemberton to Hope. And Stong’s offers online shopping with home delivery for $7.99 for customers in Greater Vancouver and Bowen Island.

Costco.ca also offers online shopping for some of its grocery products, although the listings are limited. Walmart launched its Canadian service in September and it has 2,000 grocery items available online, with another 1,000 being added every month.

Online shopping in Canada was worth $18.9 billion in 2012, a 24-per-cent hike over 2010, according to Statistics Canada. Travel topped the online sales charts at 58 per cent of Internet users, compared to 18 per cent who said they purchased food or beverages online.

Sklar suggested that while Amazon won’t sell “a ton of groceries in the next year,” longer term it will change the market.

“If I was choosing to invest in Google, Twitter, Facebook or Amazon, I would invest in Amazon,” he said. “Why? They have showed such a capacity to not cater to the quarterly Wall Street demands. They are investing in their platform for the longer term, and you see the results.

Sklar said Walmart is struggling with the shift to online sales, and Amazon’s entry into the Canadian grocery market is another “stresspoint” for that company.

“We can see this more as a lightening rod,” he said. “Who is going to be most upset about this? Walmart. They are very focused on Amazon.”

And will traditional grocery stores that currently have no ecommerce component start selling online?

“I think they will,” said Sklar, adding that while the competition is tougher in Ontario because of the concentration of grocery retailers, in B.C., he expects stores like Safeway, Overwaitea and others will be forced by consumer demand to add online service.

“In the grocery business, it’s not a choice to be absolutely competitive on milk, juice and eggs,” he said. “What will the customers expect or demand tomorrow, or they’re going to shop somewhere else?”

The new auto store on Amazon’s Canadian site has more than 200,000 automotive items for cars, trucks, RVs, motorcycles and sports vehicles.

“We’re working to deliver an unmatched selection of everyday essentials and must-have products. With just a few clicks, customers can discover millions of items, take advantage of free shipping or Free Two Day Shipping with Amazon Prime, and have items delivered to their doorstep,” Alexandre Gagnon, country manager for Amazon.ca., said in a release.

Seattle-based Amazon recently posted close to 100 Vancouver jobs, and it is expected the retail giant will move into the ultra-modern LEED-certified Telus Garden building.

Amazon’s online grocery department is split into a number of sections, from beverages to snacks, baking goods and other items. It includes a “natural and organic” store. Amazon’s searchable format allows shoppers to look for specific items, such as gluten-free or fair trade, to filter the choices. Like Costco, some of the items are sold in bulk.

For example, if you’re looking for gluten-free crackers, the site has the popular Mary’s Gone Crackers, but you have to buy a pack of 12, 184-gram packages for $79.91. Shoppers can get free two-day shipping with Amazon Prime, an added service that costs $79 a year, although Amazon offers a 30-day free trial. Many of the items in the new departments are eligible for Amazon’s free shipping that takes four to eight business days, with shipping options the same as other products listed on the Amazon site.

There is no fresh or refrigerated food available on Amazon’s Canadian grocery site, but the online retailer is offering fresh grocery and local products for shoppers in Seattle and Los Angeles.

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Amazon to sell groceries online in Canada

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